Overview: Are Short-Term Rentals Allowed in Kerrville, TX?

Yes, short-term rentals are explicitly allowed in Kerrville, Texas. The City of Kerrville has established a comprehensive regulatory framework for short-term rental operations through Ordinance 2022-30, which created Chapter 80 of the municipal code, and Ordinance 2022-28, which amended the zoning code to specify permitted locations. Short-term rentals are permitted within specific zoning districts and require annual registration and compliance with all applicable regulations.

How to Start a Short-Term Rental Business in Kerrville

Starting a short-term rental business in Kerrville requires a systematic approach to ensure compliance with city ordinances and state requirements:

Step 1: Verify Zoning Compliance

Before proceeding, confirm that your property is located within one of the permitted zoning districts:

• R-1A: Single-family residential with accessory dwelling unit
• R-3: Multifamily residential district
• RT: Residential transition district
• DAC: Downtown arts and cultural district
• MU: Mixed use district

Contact the Development Services Planning division for zoning verification if needed.

Step 2: Obtain Required Permits and Registration

• Complete registration through MyGovernmentOnline portal
• Submit a fully completed application for review
• Pay the initial registration fee of $100
• One permit is required per individual unit
• Permits are valid for one year and must be renewed annually

Step 3: Register for Hotel Occupancy Tax

• Register with the city's HOT reporting system
• Begin collecting occupancy tax from guests
• Submit monthly reports and payments by the 15th of each month for the previous month's stays

Step 4: Ensure Ongoing Compliance

• Maintain records for at least five years for potential audits
• Display required guest notifications
• Comply with all city codes and regulations
• Respond promptly to any code enforcement inquiries

Required Documents, Permits, Licenses, and Guidelines

Municipal Permits and Registration

• STR Permit: Required for all short-term rental units operating within city limits
• Application: Must be completed through MyGovernmentOnline
• Initial Registration Fee: $100 per unit
• Annual Renewal Fee: $50 per unit
• Application Requirements: Full application with all required documentation

State and Local Tax Requirements

• Hotel Occupancy Tax (HOT): Must be collected from guests and remitted monthly
• Registration for HOT: Required through city HOT reporting system
• Monthly Reporting: Due by the 15th of each month for the previous month's collections

Documentation and Record Keeping

• Financial Records: Must be maintained for at least five years
• Guest Information: Proper notification and information posting required
• Contact Information: Local representative contact details must be provided to the city
• Updated Documents: Any changes to original application must be reported

Specific Regulations for Short-Term Rentals

Zoning and Location Requirements

Short-term rentals are permitted only within the following zoning districts:

• R-1A (Single-family residential with accessory dwelling unit): Allows primary single-family homes plus one accessory dwelling unit
• R-3 (Multifamily residential): Permits multiple apartments or condominiums on single lots with major arterial/collector street access
• RT (Residential transition): Designed as transition between single-family residential and commercial areas
• DAC (Downtown arts and cultural district): Pedestrian-oriented center in the historic business district
• MU (Mixed use): Allows combination of residential and nonresidential uses

Operational Requirements

Parking Requirements

• Standard Requirement: One off-street parking space per bedroom
• Manager Requirement: Additional off-street parking space required if manager does not live onsite
• Maximum Occupancy: Cannot exceed 10 guests total
• Off-Site Manager: If manager lives off-site, dedicated parking space is required

Signage Regulations

• Maximum Signs: No more than one non-illuminated on-site sign permitted
• Flush-Mounted Signs: Must not exceed one square foot in size
• Freestanding Signs: Must be placed at least 20 feet from any property line, cannot exceed six square feet in size and three feet in height
• Compliance: All signage must comply with the City's Sign Code

Guest Notification Requirements

• Required Posting: Guest notification must be displayed in a conspicuous place within the rental unit
• Content: Must include local contact information and relevant property rules

Local Contact Requirements

• Designated Representative: Owner/operator must provide contact information for local representative
• Response Time: Local contact must be available within approximately two hours distance

Occupancy Limitations

• Maximum Guests: Ten (10) guests total
• Owner Discretion: Operators may set lower occupancy limits but cannot exceed ten guests
• Zoning Compliance: All operations must comply with underlying zoning regulations

Enforcement and Compliance Monitoring

Complaint Process

• Phone Reporting: Contact Code Enforcement at 830-258-1172
• Email Reporting: donna.bowyer@kerrvilletx.gov
• After-Hours: Use City of Kerrville App (available on Apple Store and Google Play)
• Emergencies: Contact Police Department or 911

Audit Requirements

• Record Retention: Maintain all records for at least five years
• Audit Authority: Subject to audit by both city and state
• Contracted Audit Services: City contracts with Avenu Insights & Analytics for random annual audits

Permit Cancellation

To cancel a permit, contact Code Enforcement at 830-258-1172 or email donna.bowyer@kerrvilletx.gov.

Contact Information for Local Authority

Primary Contacts

• Code Enforcement Division
  • Phone: 830-258-1172
  • Email: donna.bowyer@kerrvilletx.gov

City of Kerrville Main Contact

• Address: 701 Main Street, Kerrville, TX 78028
• Phone: 830-257-8000
• Website: www.kerrvilletx.gov

Department-Specific Contacts

• Development Services Planning Division: For zoning verification and planning questions
• Finance Department: For Hotel Occupancy Tax inquiries

Online Resources

• MyGovernmentOnline Portal: For permit registration and renewals
• City of Kerrville App: For after-hours complaint submission

Links to Source Pages

Primary City Resources

1. Short-Term Rental Units - City of Kerrville
2. MyGovernmentOnline Portal
3. Hotel Occupancy Tax Information
4. Code of Ordinances

Official Ordinances

1. Ordinance 2022-30 - Short-Term Rental Units
2. Ordinance 2022-28 - Zoning Amendments for STRs

Additional Resources

1. MyGovernmentOnline Customer Portal Instructions
2. Video for Registration Process
3. Hotel Occupancy Tax Online Portal
4. City Council Meeting Archive

News and Updates

1. Press Release - STR Registration Begins
2. The Lead - City Council STR Restrictions

This comprehensive guide provides all the essential information needed to legally operate a short-term rental business in Kerrville, Texas. Investors should carefully review all requirements and maintain ongoing compliance with city ordinances and state regulations to ensure successful operations.